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PLEASE EXPLAIN HOW TO GET ANSWER 5, (5 points) The risk premium for exposure to exchange rates is 5%, and the firm has a beta

image text in transcribedPLEASE EXPLAIN HOW TO GET ANSWER

5, (5 points) The risk premium for exposure to exchange rates is 5%, and the firm has a beta relative to exchange rates of .4. The risk premium for exposure to the consumer price index i:s -6%, and the firm has a beta relative to the CPI of .8. If the risk-free rate is 3%, what is the expected return on this stock? A. 1.5% B. .2% C. 3.6% D. 4%

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